Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021.

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is…

A: As you posted multiple sub parts in questions we are answering first three sub parts only kindly…

Q: On January 1, 2020, Blossom Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The…

A: Under the effective interest method of amortization of discount or premium, the difference between…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A: Bond Interest Expense in Effective Interest Method of Amortisation will be = Present Value of Bond *…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Under ACM bo d should  be  measured  at fairvalue after adjusting  transaction costs

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Bonds Payable = $10,000 * 3 bonds = $30,000 The calculation for Issue Price of bonds: The present…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Face value of bond $30,000.00 Coupon rate 6% Effective interest rate 10.00% Years to maturity…

Q: On October 1, 2020, Complex Company purchased a 12% P3,000,000 face amount bond issue for P2,700,000…

A: Bonds:- A bond is considered as the written agreement between the borrower and lender, under which…

Q: On January 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…

A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

Q: On October 1, 2021, Complex Company purchased a 12% P3,000,000 face amount-bond issue for P2,700,000…

A: A bond is a fixed interest bearing debt instrument issued by a company to finance its operation.…

Q: On December 31, 2019, Potter Corporation issued €2,000,000, 6%, 5-year bonds for €1,840,324. The…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of…

A: The Purchase price of the bond = Present Value of Interest  + Present value of Bond at Maturity.…

Q: On January 1, 2019, Garfield AG made an investment in €70,000 of the 9%, 5-year bonds of Chester…

A: Journal entries          Date      Accounts and…

Q: On January 1, 2020, Andrea Company purchased bonds with face value of P8,000,000 for P7,679,000. The…

A: The amortization of bond is to be done in order to pay down the principal on debt regularly in…

Q: Hill Corporation issued $1,200,000 of 7% bonds at 99 on January 2, 2019. Interest is paid…

A: Reacquisition of a bond refers to the repayment of the amount borrowed by issuing the bonds in the…

Q: On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a…

A: Step 1 Bond is the long term sources of finance or investment having predetermined redemption value…

Q: On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation at a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed…

Q: Journal entry to record the second period of interest, June 30,  Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: On January 1, 2020, Sage Company purchased $270,000, 6% bonds of Aguirre Co. for $248,099. The bonds…

A: The procedure of recording business transactions for the first time in the books of accounts is…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: First of all, we have the below information-Face value of bonds= $150,000Time of the bonds= 5 years…

Q: On July 1, 2020, Riverbed Company purchased $3,840,000 of Duggen Company’s 8% bonds, due on July 1,…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation to yield…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…

A: Following are the Journal entries which are required to be pass in relation to sale:

Q: Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable onJanuary 1, 2019. The market…

A: Bonds Payable: Bonds payable is a liability account that contains the amount owed to bondholders by…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: The current price of a bond is the total value for which a bondholder will be able to purchase the…

Q: On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000…

A: Interest revenue is the amount of interest that an entity might have earned during a period.

Q: a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method.…

A: “Since you have posted a question with multiple subparts, we will be solving the first three…

Q: On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On July 1, 2019, YYY Company paid P1,198,000 of 10% 20-year bonds with a face amount of P1,000,000.…

A: Solution- Calculation of Carrying value:   Interest paid = 1,000,000*10%*6/12 = 50,000   Interest…

Q: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

A: Given: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation at a market…

A: Bonds: These are the coupon-paying securities issued in the capital market by a company or the…

Q: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

A: On 01.01.2019, QQQ company purchased bonds = P4760000 Including transaction cost = P160000 Face…

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Carrying value of bond = present value of all cashflows  Bond will mature December 31st, 2021 hence,…

Q: Winrow Company received proceeds of $754,000 on 10-yea 8% bonds issued on January 1, 2019. The bonds…

A: A bondholder is someone who invests in or owns debt securities issued by corporations and…

Q: Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest…

A: Bonds represent a contract containing interest charges indicating a method of raising funds that…

Q: On January 1, 2019, Legion Company sold OMR 50,000 of 10% ten-year bonds. Interest is payable…

A: Formulas: Interest expense = Issue price * Yield

Q: On January 1, 2019, Rodgers Company purchased $400,000 face value, 10%, 3-year bonds for…

A: Bond is borrowing security that is issued by the company to raise funds from the market by making an…

Q: On January 1, 2019, Kelly Corporation acquired bonds with a face value of $400,000 for $386,808.18,…

A: Part 1 Discount  on Investment = Face Value -  Issue Price          =400000 - 386808.18…

Q: On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with a face value…

A: A bond is borrowing security issued by the company by signing a bond agreement in which terms and…

Q: Compute the December 31, 2020, amount of equity. Compute the debt to assets ratio at December 31,…

A: Hi student Since there are multiple questions, we will answer only first question. For first…

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: Discount = Face value of bonds - Amount received = $110000-99611 = $10389 Cash received= Face value…

Q: On October 1, 2019, Jenkins Corporation bought bonds with a face value of $200,000 for $199,175,…

A: Investment in bonds yields interest at a fixed rate of return and also it can be purchased at…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation at a…

A: Step 1 Journal is the part of book keeping.

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Bond is a debt insturment, which are issued to raise fund for the business. Bond is an interest…

Q: On October 1, 2021, Complex Company purchased a 12% P3,000,000 face amount bond issue for P2,700,000…

A: Solution Amortisation  uses for intangible asset by lower the value of intangible asset over a set…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.